Chinese authorities are taking steps to crack down on the use of cryptocurrencies, specifically Tether USDT, in foreign exchange trading. The Supreme People’s Procuratorate (SPP) and the State Administration of Foreign Exchange (SAFE) have issued a joint statement warning the public against using Tether as an intermediary for trading yuan with other fiat currencies.
The authorities have declared that using Tether as a medium of exchange between local and foreign currencies is illegal. They are urging local officials to implement stricter measures to punish fraudulent foreign exchange purchases, illegal foreign exchange transactions, and other related illegal and criminal activities.
This move comes more than two years after China imposed a major ban on cryptocurrency activities, including trading and mining. Since then, local agencies have been cracking down on Tether transactions, with one citizen already sentenced to nine months in prison for purchasing a significant amount of Tether.
It is important to note that any activity involving cryptocurrency exchange against the yuan is considered illegal, including indirect involvement such as technical support or offering exchange services.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇨🇳 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Tether, Starbucks, State Administration of Foreign Exchange, Chinese Web3 VC, Supreme People’s Procuratorate |
| Currencies | Tether, Chinese Yuan, US Dollar |
| Securities | None |
